Notes to SEFA
Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: Accrual
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the
ten percent de minimis indirect rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Rainbow Services, Ltd. (the “Organization”) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Accrual
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the
ten percent de minimis indirect rate allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
Title: NOTE 3 - RELATIONSHIP OF SCHEDULE OF FEDERAL AWARDS TO THE
FINANCIAL STATEMENTS
Accounting Policies: Accrual
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the
ten percent de minimis indirect rate allowed under the Uniform Guidance.
Consistent with management’s policy, federal awards are recorded in government service contracts along with other government service contracts from non-federal sources. As a result, the amount of total federal awards expended on the schedule does not agree to total government service contracts on the Statement of Activities as presented in the Organization’s audited financial statements as of and for the year ended June 30, 2024